§ 36–641.07. Distributor licensure.

(a) A person may not, after March 31, 2021, engage in any of the following activities unless the person has a valid distributor's license issued by the Office:

(1) Buy or lease from a manufacturer a game of skill machine for distribution in the District;

(2) Sell, lease, or distribute a game of skill machine in the District or market for sale, lease, or distribution a game of skill machine in the District; or

(3) Repair, replace, maintain, or service a game of skill machine or a major component or part of a game of skill machine in the District or market the repair, replacement, or maintenance of a game of skill machine or a major component or part of a game of skill machine in the District.

(b) A licensed distributor may sell, lease, or distribute a game of skill machine, or repair, replace, maintain, or service a game of skill machine or any major component or part of a game of skill machine in the District to a licensed establishment that possesses a game of skill machine endorsement from the ABC Board pursuant to§ 25-113.01(e), and after March 31, 2021, a retailer's license from the Office. No distributor may give anything of value, including a loan or financing agreement, to a licensed establishment as an incentive or inducement to locate a game of skill machine in the establishment; provided, that a distributor may provide funding to a licensed establishment for the payment of winnings to players of the distributor's game of skill machines in the licensed establishment.

(c) A person applying for a distributor's license shall do so on a form prescribed by the Office. The form shall require:

(1) The name of the applicant;

(2) The mailing address of the applicant and, if the applicant is a corporation, the name of the state in which it is incorporated, the location of its principal place of business, and the names and addresses of its directors;

(3) A report of the applicant's financial activities, including evidence of financial stability, such as bank statements, business and personal income and disbursement schedules, and tax returns; and

(4) Such other information as the Office may require by rule.

(d) In considering whether to approve an application for a distributor's license, the Office may consider, among such other evidence that may come before the Office, evidence of the applicant's licensure, conduct, and activities in another jurisdiction.

(e) An applicant for a distributor's license shall demonstrate that the equipment, system, or device that the applicant plans to offer to retailers conforms to standards established pursuant to this subchapter, the rules issued pursuant to this subchapter, and other applicable law.

(f) An applicant for a distributor's license shall pay a nonrefundable application fee of $10,000 with the application.

(g) A distributor's license shall be renewed annually; provided, that the licensee has continued to comply with all statutory and regulatory requirements and pays upon submission of its renewal application a $5,000 renewal fee.

(h) A distributor shall submit to the Office, at such times as are established by the Office by rule, a list of all models and versions of game of skill machines sold, delivered, or offered to a retailer. All such equipment shall be tested and approved by an independent testing laboratory approved as provided in § 36-641.09.